Administrative monetary penalties for Ontario insurance industry now in force

TEXT SIZE

2013-01-03

The ability for the Financial Services Commission of Ontario (FSCO) to impose administrative monetary penalties (AMPs) in the province’s insurance sector went into force New Years Day, a long-considered move that has been applauded by some within the industry.

In the 2012 Ontario Budget, the government announced that it would implement AMPs in the insurance sector as a way for FSCO to promote compliance and address violations of its regulations.

Changes to the Insurance Act, Automobile Insurance Rate Stabilization Act (2003) and the Compulsory Automobile Insurance Act have allowed for FSCO to implement penalties against infractions of those acts, as well as “breaches of orders, undertakings and licence conditions” beginning Jan. 1.

According to FSCO, AMPs can apply in situations of its listed Unfair or Deceptive Acts or Practices “by any person or entity including insurers, agents, brokers, adjusters and those involved in the provision of goods or services to insurance claimants.”

The Insurance Brokers Association of Ontario (IBAO) has been pushing for AMPs for several years, and has said they are a critical way to fight fraud in the province’s auto insurance sector.

“This represents one of the most significant advances in consumer protection in many years,” Randy Carroll, IBAO’s CEO noted in a statement. “I want to personally thank Minister Duncan and his staff for keeping his promise and getting this done.”

FSCO says it has successfully used AMPs in the regulation of the mortgage brokering and credit union sectors. The commission will provide more information in the “near future” on how the AMPs will be enforced in the insurance industry, according to its website.

Related Topics

Monitor These Topics

DisclaimerNote: By submitting your comments you acknowledge that Canadian Underwriter has the right to reproduce, broadcast and publicize those comments or any part thereof in any manner whatsoever. Please note that due to the volume of e-mails we receive, not all comments will be published and those that are published will not be edited. However, all will be carefully read, considered and appreciated.

Bringing Data Home
With the recent buzz generated around data, the migration from telematics in auto insurance to advanced analytics in homeowner risk is not surprising; perhaps it is even inevitable. Several factors have come together to push the quest for...

Rise of the Drones
The commercialization of drone technology is rapidly evolving and has created new insurance coverage issues that were not considered when current primary insurance policy language was originally developed.

21st Century Brokerage
The proliferation of digital technology into society and the global economy has begun to blur the physical and digital worlds, triggering every industry to redefine its technology strategy to maintain and grow business profitability.

Annual Statistical Issue
Providing a yearly comprehensive review of insurance company results in a format that is easy to use. It outlines and details insurance companies’ financial
performance, market breakdown, and individual company results using summary tables and indexes.
Digital Edition

SPECIAL FEATURE

National Insurance Marketer
From Aviation to Zebra Mussels, if you’re looking for markets for specialty, niche and non-standard risks - you’ll find it in the National Insurance
Marketer! The extremely popular buyers guide is used daily by brokers across Canada.
Digital Edition
Searchable Database